With its thriving technology industry hugely contributing to the significant increase in job opportunities, great education system, natural beauty, and year-round activities for both locals and visitors alike, there is no wonder why many people choose the State of Washington as their place of residence. Livability backs this up, reporting that 63% of all homes here are owned.
Despite of the high percentage of home ownership in the state, Washington homeowners insurance policy holders still pay a lot less towards their premiums. However, as the Washington State’s Office of the Insurance Commissioner advised, it’s important you know exactly what a policy’s inclusions and exclusions are. This way, you can make certain you have insurance enough to properly cover you, your home, and your other valuable possessions.
What policy inclusions do to your insurance premiums
It should go without saying that, the more inclusions your policy features, the higher premiums you’ll pay for. This is worth it though, what with Washington having higher-than-national average for various natural disasters. For instance, compared to the national average earthquake index of 1.81, WA has a 4.04 index value, as USA.com cited.
A 101 on homeowners insurance policy inclusions
In a nutshell, the term “inclusions” refer to the covered perils – any situation, event, or incident that may result in damage or loss – of your policy. The specific types of perils and how many a policy has depends on the type of insurance form and if there are optional coverages purchased. Knowing these will help you understand why your premiums are either low, regular, or high.
It’s vital you first learn more about the different types of coverage standard policies should have. Basically, these include the following:
- Dwelling Coverage – Helps cover repairs or replacements for damages to or destroyed home. Also includes coverage for attached buildings, such as decks, patios, or garages.
- Coverage for Other Structures – Helps cover repairs or replacements for permanent structures detached from the primary building (for instance, a detached garage or shed).
- Personal Property Coverage – Helps cover repairs or replacements for the insured contents of a home, including furnishings and other personal valuables.
- Additional Living Expense/Coverage for Loss of Use of Home – Helps pay for expenses incurred in the event a named peril renders the home of a policy holder unlivable for a short period of time.
- Medical Payments Coverage – Helps pay for the medical expenses of other people who sustain injuries by accident while on your property.
- Personal Liability Coverage – Helps pay for bodily injury and property damage you accidentally cause to other people.
Disaster preparedness: A final reminder
Yes, Washington is really a great place to live, but it doesn’t mean you should no longer practice disaster preparedness. Again, the state has seen its fair share of natural and man-caused disasters, so it’s way better for you to practice caution and prepare for any unfortunate but unpredictable events. Keep your Washington homeowners insurance policy up-to-date at all times, and obtain coverages for those that it excludes (such as flood and earthquake insurance) so you can have better protection. To learn more about home insurance, click here.